The profits of a firm for the last five years were as follows. Year...

The profits of a firm for the last five years were as follows.

Year	Profit (OMR)
2015	10,000
2016	20,000
2017	30,000
2018	20,000
2019	18,000

Calculate the value of goodwill on the basis of four years’ purchase of weighted average profits based on weights 1,2,3,4 and 5 respectively to the profits for 2015, 2016, 2017, 2018 and 2019. (3 marks)

Write any six need for valuation of goodwill (2 marks)

Expert Solution

ekkarill92 answered 1 year ago

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